Key Takeaways:
According to the latest updates, the crypto market is currently facing significant losses and a decline in the value of major currencies. The world’s leading cryptocurrency Bitcoin has recently declined its value below $56,000.
The price drop has stirred confusion and anxiety within the crypto ecosystem. Bitcoin reached its all-time high of $73,798 in March this year. There are many speculations regarding the steep decline of the token.
The current trading price of Bitcoin is $55,50, which reflects a decline of 5.82% over the past 24 hours. The total market capitalization of Bitcoin is $1.11 Trillion.
Despite the short-term dip, Bitcoin is still significantly up this year, with a gain of 35.39%. Not only Bitcoin but major cryptocurrencies like Ether and Solana are also experiencing significant losses.
Other major cryptocurrencies that faced major declines include Ethereum with a price decline of 8.40% with the currency trading at $2954.16, Solana price with a price plunge of 9.55% with a price of $123.08, and the XRP with a price decline of 12.48%, priced at $0.400.
Major altcoins are experiencing a significant decline as well. Ethereum, the world’s second-largest cryptocurrency, has witnessed an 8.4% decline, bringing its price down to $2,954.16. Solana has dropped to 9.55% to trade at $123.08.
As per the report, the declining enthusiasm for the US Bitcoin exchange-traded funds (ETFs) is the key factor behind the decline.
The highly anticipated launch of these ETFs in March initially surged the value of Bitcoin to its all-time high – $73,798. However, as per recent data, the slowing down of ETF inflows is raising concerns about the long-term sustainability of cryptocurrencies.
It is believed that there is growing political tension in the US. Geopolitical instability and domestic policy debates play a significant role in cryptocurrency value depletion. This uncertain event is causing investors to pull back the fund, further pressurizing the prices.
The situation is aggravated by the growing anxieties concerning the political climate and government actions. The government is disposing of the seized coins, which could potentially increase the supply, putting downward pressure on the prices.
According to the Bloomberg report, administrators of the Mt.Gox exchange are preparing to return billions of dollars worth of Bitcoins to creditors. This, however, introduces uncertainty regarding the future of Bitcoin.
As reported by Arkham Intelligence, there has been a recent movement of $2.7 billion worth of Bitcoin from a Mt. Gox-linked wallet. The purpose of the transaction remains unclear.
Investors are anxiously waiting for the release of the US nonfarm payrolls data scheduled to be released today. This critical data sheds light on the current situation of the American Job market.
The outcomes of the data can significantly impact the price trajectory of Bitcoin. Factors such as the political landscape, ETF interest, Mt.Gox repayments, and government sell-offs are already playing a crucial role in the price structure of Bitcoin.
It remains to be seen whether Bitcoin will regain its high value and climb back to the top. This latest development serves as a reminder of the inherent volatility of the cryptocurrency market.
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